A Giant Telecommunications Company That Was Previously Owned by the Government

question 152

Multiple Choice

A giant telecommunications company that was previously owned by the government of Sunzabia, a European country, is sold to an independent industrialist to ensure that the company is handled in a more efficient way. The given scenario exemplifies _____.

• A) privatization.
• B) globalization.
• C) a joint venture.
• D) a coalition.

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Definitions:

Interpersonal Relationships

Associations between two or more people that can vary in intensity and intimacy and can be found in various contexts.

Marginal-cost Pricing

The strategy of setting the price of a product equal to or slightly above the additional cost of producing one more unit of that product.

Average-cost Pricing

Average-cost pricing is a pricing strategy where the price is set based on the average cost of production, including fixed and variable costs, plus a markup.

Regulated Natural Monopolist

A company that legally operates a monopoly because it is more efficient to have a single provider of a service or good, but its operations and pricing are supervised by the government to prevent abuse.